PROJECT REPORT

ON “COMPARATIVE STUDY OF LIFE INSURANCE COPORATION WITH OTHER PRIVATE LIFE INSURANCE COMPANIES”

Submitted in Partial fulfillment of the award of degree Of MBA (Industry Integrated) Maharshi Dayanand University Rohtak Session: (2011-2013) Project Guide:

SUBMITTED TO: CONTROLLER OF EXAMINATION

SUBMITTEDBY: SIDDHARTHA BHARDWAJ 4th SEMESTER MBA (II)

DAV INSTITUTE OF MANAGEMENT FARIDABAD

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DECLARATION

In the undersigned solemnly declare that the report of the project work entitled “Comparative Study of LIC with other Private Companies”, is based my own work carried out during the course of my study under the supervision of <Name of the guide/s>

I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

_________ ____ (Signature of the Candidate) Name of the Candidate Roll No.: Enrollment No.:

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ACKNOWLEDGEMENT
It was a great opportunity for me to work with LIFE INSURANCE CORPORATION LTD . I am extremely grateful to those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible.

Firstly, I would like to thank our project guide Mr. Vijay Anand Deputy Manager , who has been a constant source of inspiration for us during the completion of this project. He gave us invaluable inputs during our endeavor to complete this project.

I would like to thanks ……… for their constant enthusiastic encouragement and valuable suggestions without which this project would not been successfully completed.

I am indebted to my friends for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept our spirits surging and helped us in delivering our best.

(SIDDHARTHA BHARDWAJ)

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TABLE OF CONTENT
CHAPTER NO. PARTICULARS PAGE.NO

1.

CHAPTER I Introduction
6-9

 Introduction of Topic  Literature Review  Objective of Study
2.

10-25 26

CHAPTER II Research Methodology CHAPTER III Company Profile CHAPTER IV Data Analysis & Interpretation CHAPTER V Conclusions &Suggestions CHAPTER VI Bibliography CHAPTER VII Annexure

27-33

3.

34-54

4.

55-66

5.

67-70

6.

71-72

7.

73-76

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Chapter – I Introduction 5 .

Birla Sun Life and Tata AIG. From my research at Max Life Insurance. The Indian consumer has a false perception about insurance – they feel that it would not benefit them if they do not live through the policy term. 6 . Reliance and LIC use television advertisements to promote their products. Nowadays however. Family responsibilities and some invest for high returns and Long term Security are the three main reasons people invest in insurance. Most of its competitors like Aviva. MAX. This message should be conveyed to potential customers so that they readily invest in insurance. Optimum returns of 16 – 20 % must be provided to consumers to keep them interested in purchasing insurance. the company is marketing life insurance products and unit linked investment plans. 25000 and an ideal policy term would be 10 – 20 years. The ideal premium would be between Rs. most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. In India.INTRODUCTION OF TOPIC The Topic of Report “Comparative Study of LIC with other Private Life Insurance Company”. LIC must advertise regularly and create brand value for its products and services. ICICI. To compete effectively LIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of year’s premium is to be paid). LIC is the oldest life insurance company in the world. I found that the company has a lot of competition from other private insurers like ICICI. It also faces competition from LIC. 5000 – Rs. It is the largest insurer in the US and is the 28th largest company in the world. Aviva. The Insurance plays important in any person life for middle class its financial support to match its incomes and expenses and do their routine works and for the Family support.

. In this Report we study also Comparative Plans of Max Life with Other Life Insurance which the includes Traditional Plans. The company should try to create awareness about itself in India. LIC was ranked 13 in the Best Places to Work survey. Nowadays however. This training enables an advisor/sales manager to market the policies better.its from 51 years. Every new recruit is provided with extensive training on unit linked funds. This message should be conveyed to potential customers so that they readily invest in insurance 7 . In the global market it is already very popular. LIC is major player . a fair bit of advertising and modifications to the existing product portfolio.On the whole LIC is a good place to work. Unit Linked Investment Plans. It also faces competition from LIC. The Indian consumer has a false perception about insurance – they feel that it would not benefit them if they do not live through the policy term. Health Plans. most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. To compete effectively LIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of year’s premium is to be paid). its carries maximum share Specially in India in these conditions Max Life Insurance introduces plans very cheaper rates which better than some LIC Plans and provides better Services to them as Compare to other insurance companies specially LIC . With an improvement in the sales techniques used. LIC would be all set to capture the insurance market in India as it has around the globe. financial instruments and the products of LIC Life Insurance.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament. Most of its competitors like ICICI. Some of the important milestones in the general insurance business in India are: 8 . With an improvement in the sales techniques used. LIC would be all set to capture the insurance market in India as it has around the globe. and Reliance use television advertisements to promote their products. on the other hand. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. LIC Act. 1870: Bombay Mutual Life Assurance Society. MAX. the first Indian life insurance company started its business.. 5 crore from the Government of India. 1956.LIC must advertise regularly and create brand value for its products and services. the first life insurance company on Indian soil started functioning. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company. the first general insurance company established in the year 1850 in Calcutta by the British. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. with a capital contribution of Rs. The General insurance business in India. can trace its roots to the Triton Insurance Company Ltd. viz. a fair bit of advertising and modifications to the existing product portfolio.

1907: The Indian Mercantile Insurance Ltd. frames a code of conduct for ensuring fair conduct and sound business practices. 1972: The General Insurance Business (Nationalisation) Act. 1972 nationalised the general insurance business in India with effect from 1st January 1973. set up. a wing of the Insurance Association of India. 9 . the first company to transact all classes of general insurance business. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1957: General Insurance Council.

riot and civil commotion. fraud. where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. Insured events that may be covered include:  Serious illness  Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. the predominant form simply specifies a lump sum to be paid on the insured's demise. 10 . for example claims relating to suicide.LITERATURE REVIEW Life insurance or life assurance is a contract between the policy owner and the insurer. rather it is the value derived from the 'peace of mind' experienced by a. As with most insurance policies.designed to provide a benefit in the event of specified event. such as terminal illness or critical illness.where the main objective is to facilitate the growth of capital by regular or single premiums. the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.  Investment policies . universal life and variable life policies.  Life-based contracts tend to fall into two major categories:  Protection policies . war. typically a lump sum payment. In the United States. life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. Specific exclusions are often written into the contract to limit the liability of the insurer. To be a life policy the insured event must be based upon the lives of the people named in the policy. not from an actual claim event. Common forms (in the US anyway) are whole life. The value for the policyholder is derived. A common form of this design is term insurance. In return.

For others. The second type is a more ancient form than the first.e. the one 11 . Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing.. the heads of different ethnic groups as well as others willing to take part. money. respectively. we can see insurance in the form of people helping each other. The most important gift was presented during a special ceremony. have his children married. If a merchant received a loan to fund his shipment. early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC. the presents were fairly assessed by the confidants of the court. This was advantageous to those who presented such special gifts. Otherwise. When a gift was worth more than 10. set up a feast.000 Derrick (Achaemenian gold coin) the issue was registered in a special office. The Babylonians developed a system which was recorded in the famous Code of Hammurabi. For example. Then the assessment was writer. presented gifts to the monarch. the members of the community help build a new one. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year). Turning to insurance in the modern sense (i. financial instruments and so on) and non-money or natural economies (without money. he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union). and practised by early Mediterranean sailing merchants. We know of two types of economies in human societies: money economies (with markets. the other neighbours must help. insurance in a modern money economy. writes in one of his books on ancient Iran: Whenever the owner of the present is in trouble or wants to construct a building. c. etc. neighbours will not receive help in the future. if a house burns down. in which insurance is part of the financial sphere). Should the same thing happen to one's neighbour.In some sense we can say that insurance appears simultaneously with the appearance of human society. financial instruments and so on). markets. 1750 BC. In such an economy and community. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices.

. Some forms of insurance had developed in London by the early decades of the seventeenth century. These new insurance contracts allowed insurance to be separated from investment. For example. as were insurance pools backed by pledges of landed estates. merchants. Hayman's will was signed and sealed on 17 November 1628 but not proved until 1633. but it works rather differently than the more familiar kinds of insurance. Insurance became far more sophisticated in post-Renaissance Europe. In the late 1680s. Guilds in the Middle Ages served a similar purpose. Today. "friendly societies" existed in England. he or she would receive an amount of twice as much. in which people donated amounts of money to a general sum that could be used for emergencies. and specialized varieties developed. and thereby a reliable source of the latest shipping news.in charge of this in the court would check the registration. and ships’ captains. If the registered amount exceeded 10. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. It became the meeting place for parties wishing to insure cargoes and ships. A thousand years later. The Talmud deals with several aspects of insuring goods. a separation of roles that first proved useful in marine insurance. Before insurance was established in the late 17th century. Toward the end of the seventeenth century. Arthur Duck. 12 . Edward Lloyd opened a coffee house that became a popular haunt of ship owners.000 Derrik. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sink age. and those willing to underwrite such ventures. Of the value of £100 each. Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance. insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century. Separate insurance contracts (i. London's growing importance as a centre for trade increased demand for marine insurance. the inhabitants of Rhodes invented the concept of the 'general average'. one relates to the safe arrival of Hayman's ship in Guyana and the other is in regard to "one hundred pounds assured by the said Doctor Arthur Duck on my life". The Greeks and Romans introduced the origins of health and life insurance c. the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London.e.

Life insurance dates only to ancient Rome. regulation of the insurance industry is highly Balkanized. but it provided only fire insurance. though at times in concert through a national insurance commissioners' organization. ship owners and underwriters met to discuss deals at Lloyd's Coffee House. History Insurance began as a way of reducing the risk of traders.S. in 1732. began in the late 1760s. predecessor to the famous Lloyd's of London. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston). In recent years. Between 1787 and 1837 more than two dozen life insurance companies were started. he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention." to insure brick and frame homes. South Carolina. In 1680. Not only did his company warn against certain fire hazards. Modern life insurance started in 17th century England. particularly against fire in the form of perpetual insurance.Insurance as we know it today can be traced to the Great Fire of London. Episcopalian priests organized a similar fund in 1769. state insurance commissioners operate individually. In the United States. which in 1666 devoured 13. In the aftermath of this disaster. "The Fire Office. with primary responsibility assumed by individual state insurance departments. In 1752. it refused to insure certain buildings where the risk of fire was too great. Benjamin Franklin helped to popularize and make standard the practice of insurance. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759.200 houses. he established England's first fire insurance company. 13 . Whereas insurance markets have become centralized nationally and internationally. The sale of life insurance in the U. originally as insurance for traders: merchants. some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks. as early as 5000 BC in China and 4500 BC in Babylon. such as all wooden houses. Nicholas Barbon opened an office to insure buildings. "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. • The first insurance company in the United States was formed in Charleston. South Carolina in 1732.

The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. In response to bills passed in California in 2001 and in Illinois in 2003. the companies have been required to search their records for such policies. he is both the owner and the insured. that beneficiary must agree to any beneficiary changes. the primary purpose of life insurance as the investors have no financial loss that would occur if the insured person were to die. she is the owner and he is the insured. With an irrevocable beneficiary. the purpose of life insurance is to provide peace of mind by assuring that financial loss or hardship will be lessened or eliminated in the event of the insured person's death. STOLI has often been used as an investment technique whereby investors will encourage someone (usually an elderly person) to purchase life insurance and name the investors as the beneficiary of the policy. In some jurisdictions. if Joe buys a policy on his own life. they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation. many insurance companies in the United States insured the lives of slaves for their owners. The beneficiary receives policy proceeds upon the insured's death. Stranger Originated Life Insurance Stranger Originated Life Insurance or STOLI is a life insurance policy that is held or financed by a person who has no relationship to the insured person. there are laws to discourage or prevent STOLI. although the owner and the insured are often the same person. But if Jane. Overview Parties to contract There is a difference between the insured and the policy owner (policy holder). or cash value borrowing. Generally. his wife. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s. policy assignments. The policy owner is the guarantee and he or she will be the person who will pay for the policy. but not necessarily a party to it. 14 . but the beneficiary is not a party to the policy.but fewer than half a dozen survived. The insured is a participant in the contract. The owner designates the beneficiary. For example. • Prior to the American Civil War. buys a policy on Joe's life.

It is 15 . Mortality tables are statistically-based tables showing expected annual mortality rates. With no insurable interest requirement. such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date. The cost of insurance is determined using mortality tables calculated by actuaries. only if the insured dies within this period will the insurer have a legal right to contest the claim on the basis of misrepresentation and request additional information before deciding to pay or deny the claim. Most US states specify that the contestability period cannot be longer than two years. Any misrepresentations by the insured on the application is also grounds for nullification. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. The policy matures when the insured dies or reaches a specified age (such as 100 years old). and underwriting The insurer (the life insurance company) calculates the policy prices with intent to fund claims to be paid and administrative costs.In cases where the policy owner is not the insured (also referred to as the celui qui vit or CQV). insurability. which is based in mathematics (primarily probability and statistics). The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Weldon.171 (1957)). close family members and business partners will usually be found to have an insurable interest. and to make a profit. although the actual death benefit can provide for greater or lesser than the face amount. some states provide a statutory one-year suicide clause). was found liable in court for contributing to the wrongful death of the victim (Liberty National Life v. Actuaries are professionals who employ actuarial science. Costs. 267 Ala. In at least one case. The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures. an insurance company which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds). For life insurance policies. insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. Contract terms Special provisions may apply. the risk that a purchaser would murder the CQV for insurance proceeds would be great.

and use of tobacco. The insurance company receives the premiums from the policy owner and invests them to create a pool of money from which it can pay claims and finance the insurance company's operations. The newer tables include separate mortality tables for smokers and non-smokers and the CSO tables include separate tables for preferred classes. a life insurance company would have to collect approximately $50 a year from each of a large group to cover the relatively few expected claims. in a group of one thousand 25 year old males with a $100.Compare this with the US population male mortality rates of 1. Such estimates can be important in taxation regulation.3 at age 65 (without regard to health or smoking status) The mortality of underwritten persons rises much more quickly than the general population.000 policy.35 in 1.35 to 0. At the end of 10 years the mortality of that 25 year-old.000 policy in the competitive US life insurance market. In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables were the typical reference points. The mortality tables provide a baseline for the cost of insurance. A 10 year policy for a 25 year old non-smoking male person with preferred medical history may get offers as low as $90 per year for a $100. these mortality tables are used in conjunction with the health and family history of the individual applying for a policy in order to determine premiums and insurability.possible to derive life expectancy estimates from these mortality assumptions. the majority of the money that insurance companies make comes directly from premiums paid. all of average health. non-smoking male is 0. gender. Contrary to popular belief. Consequently.000 payout per death = $35 per policy). while the 2001 VBT and 2001 CSO tables were published more recently. Recent US select mortality tables predict that roughly 0.000 at age 25 and 19. More recently in the US.000 people at age 65. In practice. Administrative and sales commissions need to be accounted for in order for this to make business sense.5 in 1. (0.000 non-smoking males aged 25 will die during the first year of coverage after underwriting.Mortality approximately doubles for every extra ten years of age so that the mortality rate in the first year for underwritten non-smoking men is about 2.66/1000/year.66 expected deaths in each year x $100. as money gained through investment of premiums 16 .3 per 1. The three main variables in a mortality table have been age. preferred class specific tables were introduced. Mortality tables currently in use by life insurance companies in the United States are individually modified by each company using pooled industry experience studies as a starting point.

the insurer receives permission to obtain information from the proposed insured's physicians. For example. in even the most ideal market conditions. As part of the application.can never. a person who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country. the insurer investigates each proposed insured individual unless the policy is below a company-established minimum amount. This investigation and resulting evaluation of the risk is termed underwriting. investment for retirement planning. The most common is to protect the owner's family or financial interests in the event of the insurer's demise. Other purposes include estate planning or.[ Most people are in the Standard category. and lifestyle factor into whether the proposed insured will be granted a policy. and his family (immediate and extended) have no history of early cancer. and Tobacco. Standard. Bank loans or buy-sell provisions of business agreements are another acceptable purpose. This means. Life insurance companies in the United States support the Medical Information Bureau (MIB) . that the proposed insured has no adverse medical history. [citation needed] Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances. Many companies use four general health categories for those evaluated for a life insurance policy.[citation needed] Profession. diabetes. statistically.[5] Underwriters will determine the purpose of insurance.[citation needed] Preferred Best is reserved only for the healthiest individuals in the general population. These categories are Preferred Best. for instance. people are more likely to die as they get older. 17 . Group Insurance policies are an exception. in the case of cash-value contracts. beginning with the application process. Preferred. which is a clearinghouse of information on persons who have applied for life insurance with participating companies in the last seven years.[citation needed] Rates charged for life insurance increase with the insurer's age because. or other conditions Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses. and which category the insured falls. Health and lifestyle questions are asked. Certain responses or information received may merit further investigation. travel. is not under medication for any condition. Given that adverse selection can have a negative impact on the insurer's financial situation. vest enough money per year to pay out claims.

Temporary Term Insurance Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. A common type of term is called annual renewable term.Insurance v/s Assurance The specific uses of the terms "insurance" and "assurance" are sometimes confused. The face amount is intended to equal the amount of the mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies. declining face value policy. etc. In the United States both forms of coverage are called "insurance".  Premium to be paid (cost to the insured). Types of life insurance Life insurance may be divided into two basic classes – temporary and permanent or following subclasses . and  Length of coverage (term). people using this description are liable to be corrected. The face amount can remain constant or decline. Various insurance companies sell term insurance with many different combinations of these three parameters. principally due to many companies offering both types of policy. There are three key factors to be considered in term insurance:  Face amount (protection or death benefit). In general. whole life and endowment life insurance. The policy does not accumulate cash value. while "assurance" is the provision of cover for an event that is certain to happen. they instead use just one. universal. The term can be for one or more years. Term is generally considered "pure" insurance. The premium can remain level or increase. "Insurance" is the generally accepted term. where the premium buys protection in the event of death and nothing else. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. 18 . Another common type of term insurance is mortgage insurance.). in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire. and rather than refer to themselves using both insurance and assurance titles. which is usually a level premium.term. however. flood. theft.

Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. the death benefit only to the beneficiaries. The primary advantages of whole life are guaranteed death benefits. and mortality and expense charges will not reduce the cash value shown in the policy. the cash values are generally kept by the insurance company at the time of death. a death benefit will usually be paid if the suicide occurs after the two year period. The four basic types of permanent insurance are whole life. his estate or named beneficiary receives a payout. guaranteed cash values. borrowing the cash value. and a cash value table included in the policy guaranteed by the company. or surrendering the policy and receiving the surrender value. The primary disadvantages of whole life are premium inflexibility. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. universal life. after a number of court judgments against the industry. fixed and known annual premiums. The policy cannot be canceled by the insurer for any reason except fraud in the application. limited pay and endowment. Permanent Life Insurance Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out). and the internal rate of return in the policy may not be competitive with other savings alternatives. However. and that cancellation must occur within a period of time defined by law (usually two years). Generally. The owner can access the money in the cash value by withdrawing money. However. If he does not die before the term is up. payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). if an insured person commits suicide within the first two policy years. If he dies before that specified term is up. Also. Whole life coverage Whole life insurance provides for a level premium. In the past these policies would almost always exclude suicide. he receives nothing. Riders are available that can allow one to increase the death benefit by paying 19 . unless the owner fails to pay the premium when due (the policy expires OR policies lapse). the insurer will return the premiums paid.A policy holder insures his life for a specified term.

a minimum rate of investment return on the premiums will be required in the event that a policy matures. Since these loans decrease the death benefit if not paid back. There's a mortality function and a cash function. and equity indexed universal life insurance. dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary. Premiums are much higher than term insurance in the short-term.additional premium. if any. payback is optional. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company). Actuarially. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. it is reasoned that out of a group of 1000 people. The death benefit can also be increased through the use of policy dividends. 20 . The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges. if even 10 of them live to age 95. Universal life coverage Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. then the mortality function alone will not be able to cover the cash function. the beneficiary receives the death benefit only. Mortality charges and administrative costs are then charged against (reduce) the cash account. So in order to cover the cash function. Cash value can be accessed at any time through policy "loans". If the dividend option: Paid up additions is elected. there are basically two functions that make it work. then the policy matures and endows the face value of the policy. Interest is paid within the policy (credited) on the account at a rate specified by the company. but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. There are several types of universal life insurance policies which include "interest sensitive" (also known as "traditional fixed universal life insurance"). Cash values are not paid to the beneficiary upon the death of the insured. variable universal life insurance. Premiums increase the cash account. A universal life insurance policy includes a cash account. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. With all life insurance.

The drawback to option B is that because the cash value is accumulated "on top of" the death benefit. 21 . Option B pays the face amount plus the cash value. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. In the United States. the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity.Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. as it's designed to increase the net death benefit as cash values accumulate. and paid-up at age 65. Common limited pay periods include 10-year. And universal life has a more flexible death benefit because the owner can select one of two death benefit options. Option A and Option B. Depending on how interest is credited. equals the death benefit (face amount) at a certain age. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). as the insured gets older. Mortality costs and administrative charges are known. Thus. the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older). Endowments Endowments are policies in which the cash value built up inside the policy. Limited-pay Another type of permanent insurance is Limited-pay life insurance. 20-year. These follow tax rules as annuities and IRAs do. in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The age this commences is known as the endowment age. the cost of insurance never decreases as premium payments are made. With each premium payment.

It is also very commonly offered as "accidental death and dismemberment insurance". some companies may even offer a triple indemnity cover. but do not typically cover any deaths resulting from health problems or suicide. etc. Another common rider is premium waiver. the policy will generally pay double the face amount if the insured dies due to an accident. some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering. but also for loss of limbs or bodily functions such as sight and hearing.g. Because they only cover accidents. these policies are much less expensive than other life insurances. 65). an insured should always review their policy for what it covers and what it excludes. after a specific period (e. or the coverage is not maintained after the accident until death occurs. If this rider is purchased. or involvement in a war (military or not). Accidental death and AD&D policies very rarely pay a benefit. A common rider is accidental death. which used to be commonly referred to as "double indemnity". 22 . which pays twice the amount of the policy face value if death results from accidental causes. either the cause of death is not covered. This used to be commonly referred to as a double indemnity coverage. 15 years) or a specific age (e. Related Life Insurance Products Riders are modifications to the insurance policy added at the same time the policy is issued. Accidents include anything from an injury. In an AD&D policy. flying an airplane.Endowment Insurance is paid out whether the insured lives or dies. as if both a full coverage policy and an accidental death policy were in effect on the insured. also known as an AD&D policy. To be aware of what coverage they have. which waives future premiums if the insured becomes disabled. benefits are available not only for accidental death. In some cases. it does not cover an insured who puts themselves at risk in activities such as: parachuting.g. Accidental death benefits can also be added to a standard life insurance policy as a rider. These riders change the basic policy to provide some feature desired by the policy owner. Accidental Death Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. professional sports. Often. Also.

Underwriters will determine the purpose of insurance. diabetes. is not under medication for any condition. For example. [citation needed] Preferred Best is reserved only for the healthiest individuals in the general population. and his families (immediate and extended) have no history of early cancer. Preferred. Contract provisions will attempt to exclude the possibility of adverse selection. usually employees of a company or members of a union or association. Many companies use four general health categories for those evaluated for a life insurance policy. and the financial strength of the group. Other purposes include estate planning or. travel. in the case of cash-value contracts. Modified whole life: is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy. Single premium whole life: is a policy with only one premium which is payable at the time the policy is issued. Most people are in the Standard category. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage. Many companies offer policies tailored to the needs of senior applicants. that the proposed insured has no adverse medical history. Rather. a person 23 . Standard. Bank loans or buy-sell provisions of business agreements are another acceptable purpose. Senior and preneed products: Insurance companies have in recent years developed products to offer to niche markets. the underwriter considers the size and turnover of the group. and which category the insured falls. and Tobacco. Survivorship life: is a whole life policy insuring two lives with the proceeds payable on the second (later) death. for instance. Group life insurance: is term insurance covering a group of people. These categories are Preferred Best. Individual proof of insurability is not normally a consideration in the underwriting. The most common is to protect the owner's family or financial interests in the event of the insurer's demise.Joint life: insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first death or second death.[citation needed] Profession. and lifestyle factor into whether the proposed insured will be granted a policy. most notably targeting the senior market to address needs of an aging population. investment for retirement planning. This means. or other conditions Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses.

flood. principally due to many companies offering both types of policy. in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire. Preneed (or prepaid) insurance policies: are whole life policies that. then the mortality function alone will not be able to cover the cash function. The death proceeds are then guaranteed to be directed first to the funeral services provider for payment of services rendered. In many cases. In the United States both forms of coverage are called "insurance". In general. although available at any age. etc. the applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for. "Insurance" is the generally accepted term. if even 10 of them live to age 95. they instead use just one.). So in order to cover the cash function. to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. Most contracts dictate that any excess proceeds will go either to the insured's estate or a designated beneficiary. the internal rate of return can be higher 24 . are usually offered to older applicants as well. Insurance v/s Assurance The specific uses of the terms "insurance" and "assurance" are sometimes confused. theft. Actuarially. and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses. These are often low to moderate face value whole life insurance policies.who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country. This may also be marketed as final expense insurance. a minimum rate of investment return on the premiums will be required in the event that a policy matures. however. Depending on how interest is credited. Premiums are flexible. Universal life insurance addresses the perceived disadvantages of whole life. people using this description are liable to be corrected.[citation needed] Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances. it is reasoned that out of a group of 1000 people. while "assurance" is the provision of cover for an event that is certain to happen. and rather than refer to themselves using both insurance and assurance titles. This type of insurance is designed specifically to cover funeral expenses when the insured person dies.

Contract provisions will attempt to exclude the possibility of adverse selection. usually employees of a company or members of a union or association.because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). as the insured gets older. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage. most notably targeting the senior market to address needs of an aging population. Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. 25 . to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. Group life insurance: is term insurance covering a group of people. Option B pays the face amount plus the cash value. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit. Rather. and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses. the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older). These are often low to moderate face value whole life insurance policies. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). and the financial strength of the group. Option A and Option B. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. Thus. With each premium payment. Senior and preneed products: Insurance companies have in recent years developed products to offer to niche markets. This may also be marketed as final expense insurance. And universal life has a more flexible death benefit because the owner can select one of two death benefit options. Many companies offer policies tailored to the needs of senior applicants. the cost of insurance never decreases as premium payments are made. the underwriter considers the size and turnover of the group. Individual proof of insurability is not normally a consideration in the underwriting. the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. as it's designed to increase the net death benefit as cash values accumulate.

the primary obligation to its policyholders. keeping in view national priorities and obligations of attractive return.OBJECTIVES OF THE STUDY  Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.  Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. without losing sight of the interest of the community as a whole. in the investment of funds.  Bear in mind. the funds to be deployed to the best advantage of the investors as well as the community as a whole. whose money it holds in trust.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment.  Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. 26 .

pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. 27 .  Promote amongst all agents and employees of the Corporation a sense of participation.

Chapter – II Research Methodology 28 .

In order to understand the performance of different companies in the market.  Locating of source of data. A research design is basically a blue print of how a research is to be conducted. it may include. primary survey and secondary survey RESEARCH DESIGN Basically there are 3 types of approaches used during the any research:  Exploratory  Descriptive  Experimental 29 . The success of any Insurance company depends on how well they are able to align with the objectives and needs of individual customers.  Choosing the approach  Determining the types of data needed. an intensive study of the market is absolutely necessary.RESEARCH METHODOLOGY To conduct the market research first of all it is necessary to create a research design.  Choosing a method of data. To know how a company is performing and whether they have any cutting edge advantage over competitors. we did two types of surveys. and is able to provide proper solutions to them.

major search engine search results may be sent by email to researchers by services such as Google Alerts. Often the best approach. However. averages and other statistical calculations.projective methods. RSS feeds efficiently supply researchers with up-to-date information. Given its fundamental nature. descriptive research can be said to have a low requirement for internal validity. the research cannot describe what caused a situation. where one variable affects another. Although the data description is factual. it does not answer questions about e. employees. which is done under analytic research. Descriptive research cannot be used to create a causal relationship. case studies or pilot studies.During this research Descriptive and Exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information. and websites may be created to attract worldwide feedback on any subject.: how/when/why the characteristics occurred. accurate and systematic. prior to writing descriptive research. Exploratory research often relies on secondary research such as reviewing available literature and/or data. Descriptive research: Descriptive Research also known as statistical research.g. describes data and characteristics about the population or phenomenon being studied. Exploratory research helps determine the clearly best research design. In other words. is to conduct a survey investigation. management or competitors. It should draw definitive conclusions only with extreme caution. The description is used for frequencies. The Internet allows for research methods that are more interactive in nature. comprehensive search results are tracked over lengthy periods of time by services such as Google Trends. exploratory research often concludes that a perceived problem does not actually exist. Exploratory Research: that has not been Exploratory research of research conducted for a problem defined. or qualitative approaches such as informal discussions with consumers. 30 . focus groups. data collection method and selection of subjects. and more formal approaches through in-depth interviews. Thus. For example.

and the dependent variable is measured. A child may carry out basic experiments to understand the nature of gravity. Uses of experiments vary considerably between the natural and social sciences. Experiments provide insight intocause-and-effect by demonstrating what outcome occurs when a particular factor is manipulated. or establishing the validity of a hypothesis.[ TYPES OF DATA USED: Both primary and secondary data is used in the research.g. Data Collected Methods To conduct the market research the data is collected by two sources. Experiments can vary from personal and informal (e. but always rely on repeatable procedure and logical analysis of the results.Experimental Research: An experiment is an orderly procedure carried out with the goal of verifying. Experiments vary greatly in their goal and scale. Psychology or Political). In some disciplines (e. over a large number of iterations of the experiment. tasting a range of chocolates to find a favourite). while teams of scientists may take years of systematic investigation to advance the understanding of a phenomenon. to highly controlled (e. that all confounding factors are controlled for. 31 . The independent variable is manipulated by the experimenter. tests requiring complex apparatus overseen by many scientists that hope to discover information about subatomic particles). a 'true experiment' is a method of social research in which there are two kinds of variables.. Experiments might be categorized according to a number of dimensions. The signifying characteristic of a true experiment is that it randomly allocates the subjects in order to neutralize the potential for experimenter bias and ensures. refuting. depending upon professional norms and standards in different fields of study.g.g.

housing. Common sources of secondary data for social science include censuses. Qualitative: Semi-structured and structured interviews. Primary data. particularly in the case of quantitative data. social security as well as electoral statistics and other related databases. • A clear benefit of using secondary data is that much of the background work needed has already been carried out. provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. research-related documents. are collected by the investigator conducting the research. Sources of secondary data As is the case in primary research. organisational records and data collected through qualitative methodologies or qualitative research.SECONDARY DATA Secondary data is one which already exists and is collected from the published sources. 32 . focus groups transcripts. analysts of social and economic change consider secondary data essential. case studies might have been carried out. observation records and other personal. media promotion and personal contacts have also been utilized. for example: literature reviews. secondary data can be obtained from two different research strands: • Quantitative: Census. Secondary data. is data collected by someone other than the user. Secondary data analysis saves time that would otherwise be spent collecting data and. published texts and statistics could have been already used elsewhere. This wealth of background work means that secondary data generally have a pre-established degree of validity and reliability which need not be re-examined by the researcher who is reusing such data. by contrast. since it is impossible to conduct a new survey that can adequately capture past change and/or developments. field notes. In addition.

 Prepare a questionnaire for the market survey. Newspapers and Magazines like Economics Times. perception and preference of different insurance companies. salemanager and agencies associate. secondary data can also be helpful in the research design of subsequent primary research and can provide a baseline with which the collected primary data results can be compared to. Primary survey Primary survey included: Visiting websites and fixing appointments with their agents.  Creation of database of prospective clients from different sources calling them up to fix appointment and then visiting them. Internet PRIMARY DATA The primary sources of data refer to the first-hand information Primary data is collected during the survey with help of Questionnaires.Furthermore. 2.  Meeting different people to know their views. 33 . Therefore. Insurance Times and Insurance Post. it is always wise to begin any research activity with a review of the secondary data The sources from which secondary data was collected are: 1.

This sample size was taken on 95% confidence level and 6 significant levels. Punjabi Bag. SAMPLING TECHNIQUE Random sampling technique was used in the survey conducted. PLAN OF ANALYSIS Tables were used for the analysis of the collected data. population of Delhi excluding people below age of 18 years.SAMPLE SIZE The sample size for the survey conducted was 75 respondents. STUDY AREA The samples referred to were residing in New Delhi. Narayan. and Nehru Place. Percentages and averages have also been used to represent data clearly and effectively. 34 . The areas covered were Passim Vicar. New Friends Colony. 00. The data is also neatly presented with the help of statistical tools such as graphs and pie charts.000 which is approx. Data universe for this sample is 10.

Chapter – III Company Profile 35 .

and a spirit of trusteeship. The Life Insurance Corporation of India also' transacts business abroad and has offices in Fiji.D. 16 foreign companies & 75 provident companies). Nepal by the name of Life Insurance Corporation (Nepal) Limited in 36 . viz. to invest the funds for obtaining maximum yield for the' policy holders consistent with safety of the capital. Headquartered in Mumbai. outlined the objectives of LIC thus to conduct the businesswith the utmost economy.048 branches. by an Actor Parliament. the Life Insurance Corporation of India currently has 8 zone Offices and 113 divisional offices located in different parts of India. The then Finance Minister.325. Ken-India .3. 100divisions and 7 zonal offices spread over the country.Bahrain. Since nationalization. financial and commercial capital of India. 98 Brokers and 42 Banks (as on 31. Nairobi. around 3500 servicing offices including 2048 branches. It's a state-owned company where Government of India has 100%stake. namely.37. to render prompt and efficient service to policy holders. thereby making insurance widely popular.Assurance Company Limited.064 individual agents.C.000 cores (US$230 billion).COMPANY PROFILE Life Insurance Corporation of India (LIC) is the largest insurance group and investment company in India. LIC is associated with joint ventures abroad in the field of insurance. It has assets estimated of 1. Life Insurance Corporation of India (LIC) was formed in September. 1956. Mauritius and United Kingdom. Life Insurance Corporation Act. Deshmukh. United Oriental Assurance Company Limited. with capital contribution from the Government of India. to charge premium no higher than warranted by strict actuarial considerations. The Corporation has registered a joint venture company in 26 December.. Sheri C. 1956. 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of India and has a network of 13. while piloting the bill.2000 in Katmandu. 54 Customer Zones. Kuala Lumpur and Life Insurance Corporation (International) E. It was founded in 1956 with the merger of 245 insurance companies and provident societies (154 life insurance companies. 242 Corporate Agents.2011) for soliciting life insurance business from the public. LIC has built up a vast network of 2. 79 Referral Agents.

An off-shore company L. LIC has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. Eventually. which had created a policy framework for 37 . The slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility". 218 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2008. one of India's wealthiest businessmen. (Mauritius) Off-shore Limited has also been set up in 2001. Sachin Devkekar.50. Nationalisation In 1955. the Bhagavad Gita's 9th Chapter. 24 partnership distribution and alliance marketing relationships each. and the Life Insurance Corporation of India was created on 1956-09-01.0000 agent advisors and more than 800 own employed sales force at 712 offices across 389 cities. was sent to prison for two years. 22nd verse. The company has 133 offices dedicated to rural areas LIC invests significantly in its training programme and each agent is trained for around 100 hours as opposed to the mandatory 50 hours stipulated by the IRDA before beginning to sell in the marketplace. by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. The agent advisors are trained in-house to ensure optimal control on quality of training. The company also has 36 referral tie-ups with banks. The company currently has around 12.I.C. Training is a continuous process for agents at LIC and ensures development of skills and knowledge through a structured programme spread over 400 hours in two years. parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance agencies. The slogan can be seen in the logo.collaboration with Vishal Group Limited. the Parliament of India passed the Life Insurance of India Act on 1956-06-19. The literal translation from Sanskrit to English is "I carry what you require". In the ensuing investigations. written in Devanagiri script. This is the first time such a model has been put in place for rural marketing of insurance. a local industrial Group. owner of the Times of India newspaper. Nationalisation of the life insurance business in India was a result of the Industrial Policy Resolution of 1956. The slogan is derived from the Ancient Hindu text.

and contributed around 7% of India's GDP in 2006.extending state control over at least seventeen sectors of the economy. albeit on a base substantially higher than the private sector. at Delhi.[3]has grown to 25. Out of all the activities conducted by the organisation.28% matching the growth of the life insurance industry and also out-performing the economic growth. and providing better living conditions for the under privileged. According to the Brand Trust Report 2012. The Corporation. with the First Year Premium CAGR of 24. LIC has been continuously winning the Readers' Digest Trusted brand award. alleviation of poverty.7 million policies and a corpus of INR 45. Each year. 5Service Brand of the Country. the organisation is consistently amongst the top rated service company of India. From the year 2006. Golden Jubilee Scholarship awards are the best known.000 crore (US$140 billion). Golden Jubilee Foundation LIC Golden Jubilee Foundation was established in 2006 as a charity organisation. including the life insurance. Though in the year 2010 is ranked at 4. This entity has the aim of promoting education.[4] Awards and recognition The Economic Times Brand Equity Survey 2010 rated LIC as the No. has ironically. this award is given to the 38 . Current status LIC Zonal Office. which commanded a monopoly of soliciting and selling life insurance in India.53% and Total Life Premium CAGR at 19. Life Insurance Corporation of India. 5. it has also demonstrated a robust performance. LIC is the 6th most trusted brand of India. emerged as a beneficiary of liberalisation of the life insurance sector in India.9 cores (US$ 92 million as per the 1959 exchange rate of roughly 5 for US$1).000 servicing around 350 million policies and a corpus of over 800. Benefits of liberalisation LIC. created huge surpluses. which started its business with around 300 offices. Over its existence of around 57 years (up to 2013). After Liberalisation.

Strong promoter LIC is a strong. financially secure business and a market leader in the Life & Pensions sector. helps customers understand their latent needs at the first instance 39 . irrespective of the market condition. we understand that customers have invested their savings with us for the long term. Thus. we are one of the few brands that customers recognize. Our eight-step structured sales process ‘Disha’ however. Need-Based Selling Approach Despite the criticality of life insurance. LIC is a strong. Moreover.000). high standards of ethics and clarity of vision. like and prefer to do business. Today. our investment focus is based on the primary objective of protecting and generating good. who wish to continue their studies and have a parental income less than 60. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customer’s money is looked after well. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space.000 (US$1. and stable investment returns to match the investor’s long-term objective and return expectations.meritorious students in standard XII of school education or equivalent. We were the first private life insurer to break the ice using the idea of self-respect instead of ‘death’ to convey our brand proposition . As a life insurance company. consistent. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. is the most recalled campaign in its category. financially secure business supported by two strong and secure promoters – LIC excellent brand strength emerges from its unrelenting focus on corporate governance. our brand thought. sales in the industry have been characterized by over reliance on tax benefits and limited advice-based selling. with specific objectives in mind.

we are extremely satisfied with the base that we have created for the long-term success of this company. but to create maximisation of stakeholder's value.itself without focusing on product features or tax benefits. 'Disha'. objection handling skills and so on. Strict Compliance with Regulations We have initiated and implemented many new processes. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked 40 . These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated Focus on Training Training is an integral part of our business strategy. Need-based selling process. were authorized by the company to sell ULIPs. Focus on Long-Term Value LIC do not focus in the business of ramping up the top line only. Today.The agents who successfully completed this training only. we have developed and implemented various training modules covering various aspects including product knowledge. pricing. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. some of which were found useful by the IRDA and later made mandatory for the entire industry. Transparent Dealing We are one of the few companies whose product details. Risk Control Framework LIC has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. the first of its kinds in the industry. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed. looks at the whole financial picture. clauses are clearly communicated to help customers take the right decision. selling skills. Customers see a plan not piecemeal product selling.

Moreover. 41 . The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. We were the first private life insurer to break the ice using the idea of self-respect instead of ‘death’ to convey our brand proposition . is the most recalled campaign in its category. like and prefer to do business. we are one of the few brands that customers recognize. be it:     Protection: Need for a sound income protection in case of your unfortunate demise Investment: Need to ensure long-term real growth of your money Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customer’s money is looked after well. Diversified Product Portfolio LIC wide and diversified product portfolio help individuals meet their various needs.Guidelines. our brand thought. Today.

 Mr.. Mr. until 2002 was a Partner & Vice-President at Bain & Company. Gautam R. Mr. He was inducted as a whole-time director of LIC in 1985 and was appointed as its Executive Chairman in 1993. Pant.Brief Profile of The Board of Directors  Shri S. Roy is the Chairman of the Company. an International Association of Independent Accounting Firms and has authored several papers of professional interest. K. where he led the worldwide Utility Practice. He is the Chief Executive Officer of LIC. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. 42 . He was also Director. Inc. Corporate Business Development at General Electric headquarters in Fairfield. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. He is also the Executive Chairman of Housing Development Finance Corporation Limited (LIC). Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International. financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. He joined LIC in a senior management position in 1978. Divan has wide experience in auditing accounts of large public limited companies and nationalised banks. Mr. Boston.

The agent advisors are trained in-house to ensure optimal control on quality of training. LIC has put in place a unique hub and spoke model of distribution to deepen our rural penetration. 50. leading recruitment. LIC offers a suite of flexible products. During his 16-year tenure at LIC. psychometric test. he has been associated with the LIC Group since 1984. driving sales and servicing strategy.000 agent advisors at 712 offices across 389 cities. customer interactions etc. This is the first time such a model has been put in place for rural marketing of insurance.531 employees Members On The Board Of The Corporation Shri S. The Company places a lot of emphasis on its selection process for agent advisors. A fellow of the Institute of Chartered Accountants of India. Mr.Mr. 24 partnership distribution and alliance marketing relationships each.Roy (Chairman) Shri SushobhanSarker (ManagingDirector. contributing to product launches and performance management system. The company currently has around 12. overseeing new business and claims settlement.screening. career seminar and final interview. It now has 37 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need besides this. Parasnis has been responsible for setting up branches. The company also has 36 referral tie-ups with banks.LIC) 43 . 2008. As one of the founding members of LIC life. Paresh Parasnis is the Principal Officer and Executive Director of the company since November 14.K. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. the company offers 6 products and 7 riders in group insurance business. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India  Mr. which comprises four stages . The company currently has more than 12. Mr. he was responsible for driving and spearheading several key initiatives.

Roy ( Chairman cum Managing Director. and by rendering resourcesforeconomic development. Mainak ( Managing Director.S. ) Shri A. ) Shri M.V.B.K. Sampath Shri Amardeep Singh Cheema Smt Manjari Kackar Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns. LIC ) Shri ArvindMayaram (Secretary.Shri S.DepartmentoEconomicAffairs) Shri RajivTakru (Secretary. Tanksale ( Chairman & Managing Director. of India. Central Bank of India ) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K. Govt." Vision 44 . Ministry of Finance. GIC. Department of Financial Services.

local cheque (subject to realization of cheque)."A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.  The DD and cheques or Money Order may be sent by post. if it contains age or date of birth. The following are accepted as evidence of age:  Certified extract from Municipal or Local Body’s records made at the time of birth.  Certificate of Baptism or Certified Extract from Family Bible. Institutions or  Passport issued by the Passport Authorities in India. Demand Draft at Branch Office. Payment Of Premium:  By cash. if age or date of birth is stated therein  Certified Extract from Service Register in the case of Govt." HELP US TO SERVE BETTER Admission of Age: Age is the main basis of calculation of premium under life insurance policies. employees and employees of Quasi-Govt. 45 .  Certified Extract from School or College records.

A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. New Delhi. Jeevan Shikha Building. Santacruz. Ahmedabad. Borivili are dedicated for collection of premiums through cheques. a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums. Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC. Chandigarh. The certified Mandate Forms are to be submitted to our BO/DO. Citibank. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Federal Bank and BillDesk. Secunderabad & Visakhapatnam. Jaipur. Hyderabad. Vijaywada. Days Of Grace: Policyholder should pay the premiums on due dates.  Many Banks do accept standing instructions to remit the premiums. Patna. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. Citibank Kiosks at Industrial Assurance Building. Kanpur.  Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Bangalore. Kolkata. 46 . New India Building. Churchgate. Corporation Bank. However.HDFC Bank. Pune. Goa and Nagpur. on the due dates and months mentioned on your policy bond. ICICI Bank. Trivandrum. Chennai. UTI Bank. Times of Money. Bill Junction.  Through Internet : Payment of premiums can be made through Internet through Service Providers viz. Bank of Punjab.

When the days of grace expire on a Sunday or a public holiday. the premium may be paid on the following working day to keep the policy in force. the policy lapses. The correct address facilitates better service and quicker settlement of claims. If the premium is not paid before the expiry of the days of grace. within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions. 47 . Ordinary Revival. Change of Address and Transfer of Policy Records:  The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. Policies can also be revived under Loan-cum-Revival and SB-cum-Revival schemes.. Special Revival and Instalment Revival.  Policy records can also be transferred from one Branch Office to another for servicing. as requested by the policyholder. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled. Revival of Lapsed Policy: If the policy has lapsed. Request for revival may be made to the Branch Office servicing the policy. The Corporation offers three convenient schemes of revival viz. Loss of Policy Document:  The Policy Document is an evidence of the contract between the Insurer and the Insured. it can be revived during the life time of the life assured.

Relief to Policyholders:  The Corporation generally allows concessions on payment of premiums. Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced. The rate of interest charged at present is 9% p. The Nominee does not get any other benefit except to receive the policy money on the death of the Life Assured. Nomination:  Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person to receive policy moneys in the event of the policy becoming a claim by the assured’s death. inclusive of the cash value of bonus. A nomination may be changed or cancelled by the life assured . Assignment: 48 .  Loans are not granted for a period shorter than six months. etc when the policyholder are affected by natural calamities such as droughts. settlement of claims. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility. earthquakes. cyclones. etc. payable half-yearly. Loans:  Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paidup. issue of duplicate policies. floods.a.

000/. when such a policy is reassigned. Hence. death claim arises. When an assignment is executed. II. the policyholder will have to make a fresh nomination to avoid delay in settlement of claim. Nomination automatically stands cancelled. and the necessary Discharge Voucher is also sent for execution by the assured. The name of the policyholder Death Certificate issued by concerned Authority 49 . all rights. In case the policyholder does not get any intimation from the Branch Office concerned. title and interest. Assignment means transfer of rights. quoting the Policy Number.are settled without insisting for Policy Bond and Discharge Voucher.  Assignment can be either conditional or absolute.60.  Survival Benefit payment up to Rs. On assignment (other than to LIC). he/she should contact them. Death Claims: If the life assured dies during the term of the policy. Survival Benefit/Maturity Claims:  LIC settles survival benefit/maturity claims on or before the due date. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: The Number of the policies I. title and interest in respect of the property assigned are immediately transferred to the Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition made in the assignment.  Policy holders are intimated well in advance by the Branch Office which services the policy regarding the payment.

V. However.  The claim is usually payable to the nominee/assignee or the legal heirs. in the event of the death of the life assured within a period of six months or one year from the date of the first unpaid premium.  The claims that have arisen within a period of two years from the date of commencement of the policy. This is to ensure 50 . are treated as early claims and investigation is compulsory in such cases. the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law. necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant.  Claim Review Committee: The Corporation settles a large number of Death Claims every year. IV. if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will.  The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made. The date of death The cause of death and Claimant’s relationship with the deceased  On receipt of the intimation of death.  The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements. Only in case of fraudulent suppression of material information is the liability repudiated. subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy.III. provided premiums have been paid for at least three years and five years respectively. as the case may be.

 Policyholder can approach the Insurance Ombudsman for the redressal of their complaints free of cost. any dispute in regard to premiums paid if payable in terms of the policy. appropriate decisions are taken. As a result of such review. policyholders and public.  Green Channel facility has been introduced for the speedy completion of proposals. very small. 51 . any dispute on the legal construction of the policies in so far as such disputes relate to claims. insurance document to customers after receipt of premium. At present there are 12 centres operating all over the country. Insurance Ombudsman: The Grievance Redressal Machinery has been further expanded with the appointment of Insurance Ombudsman at different centers by the Government of India. loans. Even in these cases. revivals. depending on the merits of each case. Initiatives in Policy Servicing Areas:  All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give prompt computerized services from new policy introduction. a retired High Court/District Court Judge. an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office.that claims are not paid to fraudulent persons at the cost of honest policyholders. The number of Death Claims repudiated is. etc to final claims settlement. acceptance of renewal premium. however. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants.  Following type of complaints fall within the purview of the Ombdusman any partial or total repudiation of claims by an insurer. The Claims Review Committees of the Central and Zonal Offices have among their Members.

Times of money. Federal Bank and Bill desk. except holidays.Marketing Manager At Zonal Office --. Citi Bank.Sr. Grievance Redressed Machinery:  Machinery for redressal of policyholders? Grievances exist in all the offices of the Corporation.30 pm and 4.Regional Manager (MT) At Central Office --. Policyholder can approach these officers to get their grievances redressed. Bank of Punjab.  The Designated Officers at the various offices of the Corporation are : At Branch Office --. These are headed by designated Officers who are available at their respective Offices every Monday between 2.. Payment of premiums can be made through internet through service providers. Bill Junction. Corporation Bank./Branch Manager At Divisional Office --. Bima Account 1 Bima Account 2 Endowment Plus 52 . ICICI Bank.Executive Director (MT/IO/CRM) INSURANCE PLANS As individuals it is inherent to differ. viz. Each individual's insurance needs and requirements are different from that of the others. UTI Bank.30 pm. HDFC Bank. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Jeevan Anurag CDA Endowment Vesting At 21 CDA Endowment Vesting At 18 Jeevan Kishore Child Career Plan Jeevan Ankur Komal Jeevan Marriage Endowment Educational Annuity Plan Jeevan Chhaya Child Future Plan Or Jeevan Aadhar Jeevan Vishwas The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha Plan Jeevan Amrit Jeevan Shree-I Jeevan Pramukh The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat 53 .

I The Whole Life Policy The Whole Life Policy.Jeevan Bharati .Limited Payment The Whole Life Policy.Single Premium Jeevan Anand Jeevan Tarang Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan-I Jeevan Saathi 54 .

25% in corporate bonds (AAA and AA rated bonds only). Our current portfolio has almost 70% invested in GOI bonds. The balance 5% is invested in short-term cash instruments to meet working capital requirements.Investment of LIC Life Insurance Corporation invests only in safe debt instruments with the highest credit ratings. 55 .

The growth in agency distribution will be complemented by strong growth in partnership distribution.500. To support this growth plan. the shareholders are committed to increase the capital base to Rs.1.IRDA has overarching rights to amalgamate companies and change the management to protect policyholder interests. The company plans to significantly expand its distribution footprint by opening more than 100 new offices every year for next 34 years.P (Managing Partner) SGO (Senior General Officer) Partner 56 .000 from current 36. The number of agent advisors is expected to touch 2. The company currently has an equity base of Rs. There are 13000 employees all over India and 55000 Agent advisors. 032 crore. 00. 2. Span of Organization Life Insurance Corporation has a strong growth focus. CEO (Chief Executive Officer) Channel Head 2 Vice President M.650 crores over the next 3-4 years.

6 A.P (Associate Partner) 9 ADO/DO (Apprenticeship Development Office/ Divisional Office) 57 .

Chapter – IV Data Analysis And Interpretation 58 .

and Business 10 out of 20 (30%). Govt. which have played a major role in the field of life insurance companies? TABLE I: Insurance LIC HDFC ICICI Others CHART I: Pvt. Which insurance companies have been successful to make strong base by advertisement? 59 . Companies II. 3 out of 20 (9%) and 5 out of 20 (6%).1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Government and Business sectors I. 13 out of 20 (39%) and 10 out of 20 (30%) are in favour of LIC. while 5 out of 20 (15%). According to you.Employees 13 3 3 1 Business Man 10 5 4 1 Analysis: After analysing this data it is found that from the given three respective level of Pvt.Employees 10 5 3 2 Govt.DATA ANALYSIS Respondents are taken from Private.

and Business 10 out of 20 (30%). while 5 out of 20 (15%).TABLE II: Insurance LIC HDFC ICICI Others CHART II: Pvt. Govt. Companies 60 . 3 out of 20 (9%) and 5 out of 20 (6%).1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt.Employees 14 2 3 1 Business Man 12 4 3 1 Analysis: After analysing this data it is found that from the given three respective level of Pvt.Employees 12 3 4 2 Govt. 13 out of 20 (39%) and 10 out of 20 (30%) are in favour of LIC.

Employees 12 3 4 2 Govt.Employees 14 2 3 1 Business Man 12 4 3 1 CHART III: Analysis: From the above table. IV. whereas only 2 out of 20 (6). 2 out of 20 (6%) and 4 out of 20 (12%) are in favour of ICICI. it is found that from given three sector Private. 14 out of 20(42%). Do you think insurance policy in the direction of public welfare? 61 . Govt and Business 12 out of 20(36%). 10 out of 20(30%). are in the favour of LIC out of 20 (9%). 2out of 20(6%) 1 and out of 20(3%) favour others company.III. Which insurance company has gained massive public support in the current fiscal year? TABLE III Insurance LIC HDFC ICICI Others Pvt.

TABLE IV Insurance Yes No Pvt.Employees 16 4 Business Man 12 8 CHART IV: Analysis: The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of 20 (21%) disagree.Employees 13 7 Govt. from govt sector 16 out of 20 (48%) think it right but 4 out of 20 (12%) don’t think it so and from business man 12out of 20 (36%) are in favour of the above statement but out of 20 (24%) don’t favour it. V Is retirement bond or pension policy launched by the number of private player as well as public sector company in the direction of secured old age? 62 .

Employees 18 2 Business Man 13 7 CHART V: Analysis: It is obvious from the above table that 15 out of 20 (45%).Employees 15 5 Govt. Do you think that risk coverage factor included in Insurance policy attracts general public toward the policy ? 63 .TABLE V: Insurance Yes No Pvt. 18 out of 20 (54%) and 12 out of 20 (39%) from the given three think retirement bend or pension policy a legitimate step in the direction of secure old age but 5 out of 20 (15%). VI. 2 out of 20 (6%) and 7 out of 20 (21%) don’t agree with the opinion of the majority class.

From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor attractive but rest 8 out of 20 (24%). 64 . 4 out of 20 (12%) and 9 out of 20 (27%) from the above them sector don’t think it so encouraging towards saving trend whereas 3 out of 20(9%).TABLE VI: Insurance Yes No Pvt. 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.Employees 12 8 Govt.Employees 16 4 Business Man 11 9 CHART IV: Analysis: From the above table it is found that 12 out of 20 (36%) from private sector 16 out of 20 (48%).

sector and 12 out of 20 (36%) think term plan as a security cover but 9 out of 20 (27%). 15 out of 20 (45%) from Govt.is obvious from 65 . from the Pvt. What according to you.Employees 15 5 Business Man 12 8 Analysis: It the above data that 11 out of 20(33%).Employees Security Cover Accumulative Money CHART VII: 11 9 Govt. 5 out of 20 (15%) and 8 out of 20 (24%) from the three respective group think it as a way of accumulating money insurance company.VII. Sector. the term plan that only covers risk and doesn’t cover maturity benefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders ? TABLE VII Pvt.

Employees Yes No CHART VIII: 16 4 Govt.Employees 18 2 Business Man 16 4 Analysis: From analysing the above data it is found that 16 out of 20 (48%) from Pvt. sector and 16 out of 20 (48%) think that the arrival of private players envisage a lot of choice to policy holder. 18 out of 20 (54%) from Govt.VIII. 66 . 2 out of 20(6%) and 4 out of 20(12%) don’t think it so. Do you think that the arrival of so many private companies in this insurance sector envisage a lot of choice to policy holder? TABLE VIII: Pvt. Sector . But 4 out of 20 (12%).

Employees 20 Business Man 19 1 Analysis: From this above data. Do you agree that customer-centricity and transparency are the buzzword for success in this evolving industry? TABLE IX: Pvt.Employees Yes No CHART IX: 18 2 Govt. Sector and 20 out of 20 (60%) from Govt. it is found the 18 out of 20 (54%) from Pvt. 67 . Sector 19 out of 20(57%) fom Business men agree with this statement whereas only 22 out of 20(6%) from Pvt. Sector and 1 out of 20 (3%) from Business men do not agree with this statement.IX.

INTREPRETATIONS 68 . Which are popular insurance plans these days? TABLE X: Type of Plan Term Insurance Plans Endowment Plans Pension Plans Child Plans Tax Saving Plans CHART X: No. of Respondents 10 25 15 10 15 Analysis: In above graph 10 out of 75 interested and like term insurance where only death cover no maturity value but 25 out of 75 interested in endowment plan and there after pension plans 15 out of 75 and then taxing saving plans and at last child plan with 5 out of 75.X.

 Customers are less aware about the private insurance company in market.  LIC is too selective in making a rather than to appoint any one like LIC. tax planner wants corporate agency rather than to be a financial consultant. due to which new insurance companies are facing trouble in capturing market share. 69 .  LIC has created a branded image in 3-4 decades.  Customer doesn’t want to join as financial consultant because it’s on commission basis and they want the job on salary basis.  If the customers are joining lithe segment is more of tax consultant.  Some customer likes to join LICs because it is a Part-time job .  Educated customers are now vending towards private insurance Companies.  LIC is having good retention strategies for their financial consultant. due to the attractive packages and services provided by various new insurance companies.  Many professions like CA. investment for consultant and other people who are engaged in investment business that is because they want to diversity their portfolio.

Chapter – V Conclusions And Suggestions CONCLUSION 70 .

Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth LIC in public sector. we come at the conclusion that :  There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of customers. It has brought about greater choice to the customers.After overhauling the all situation that boosted a number of Pvt.  The entry of the Pvt.  LIC is not left behind in the present race of advertisement.  Private insurers have restricted reach to the customers.that allows life insurers to leverage on the risk product through bank network was adopted by private players. But LIC will not left behind as picking up majority stake in the corporation Bank and large equity stake in the Oriental Bank of Commerce.  Bank assurance.players in the insurance sector has expanded the product segment to meet the different level of the requirement of the customers.  LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance products. 71 .

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increase the confidential level of the customers to the private players.

SUGGESTIONS

 Premium allocation charge (initial charge) should be reduced to provide customer with better return.

 Policy administration charge should be reduced to gain more advantage in the market.

 Surrender charges should be reduced. More focus on Health plans

 Increase term of life Partner Plus Plan.

 Increase value of a unit in health plan.

 Decrease the period of surrender in traditional plan

72

LIMITATIONS OF THE STUDY

 The study is focused only in LIC Insurance Company Ltd.

 Researchers find the difficulty in searching the appropriate advisor and respondent throughout the city

 In this study the sample size is 270. The results might vary when the sample size values changes it.

 Thus the respondents are not come forward to provide their feedback regarding their organisation than the result

73

74

Chapter – VI Bibliography

75

C.liclndia.  L.w.com  www.indiainfoline.com  www. 2006  ICICI Annual Report.C. 2006  Malhotra Committee Report on Reforms in the Insurance Sector. 2006  HDFC Annual Report. 1999 NEWSPAPERS / MAGAZINES  The Economic Times  The Insurance Times  Insurance Post WEBSITES  w.I.w.  The Insurance Regulatory and Development Authority Bill.lrdaindia.org. 1993.com 76 . Annual Report.BIBLIOGRAPHY BROCHURES / INFORMATION BOOKLETS  Product List L.I.

 www.com 77 .icici.

Chapter – VII Annexure 78 .

Faridabad. I am a student of DAV INSTITUTE OF MANAGEMENT. I am required to do a research based project. Do you have a life insurance policy/investment plan in your name? o Yes o No If yes which company’s insurance policies do you hold? o MAX Life Insurance o o o o Aviva Life Insurance LIC ICICI Prudential Life Insurance Bharti Axa Life Insurance o Birla Sun Life Insurance o Bajaj Allianz Life Insurance o Tata AIG Life Insurance o ING Vysya Life Insurance o Others (specify name) According to you have a Major role in the field of life insurance companies? o o LIC Others o HDFC o ICICI Which insurance companies have been successful to make strong base by advertisement? o LIC o ICICI o HDFC o Others Which insurance company has gained massive public support in the current fiscal year? o o LIC ICICI o HDFC o Others 79 .QUESTIONAIRE Dear Sir/Madam. Kindly spend a few minutes of your valuable time and fill in this questionnaire. As part of the requirements for my MBA (II) Degree.

the term plan that only covers risk and doesn’t cover maturitybenefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders ? o Security Cover o Accumulative Money Do you think that the arrival of so many private companies in this insurance sector envisage a lot of choice to policy holder? o Yes o No Do you agree that customer-centricity and transparency are the buzzword for success in this evolving industry? o Yes o No Which are popular insurance plans these days? o o o Term Insurance Unit Linkes Plans Tax Saving Plans o Endowment o Pension Plans o Child Plans 80 .Do you think insurance policy in the direction of public welfare? o Yes o No Is retirement bond or pension policy launched by the number of private player as well as public sector company in the direction of secured old age? o Yes o No Do you think that risk coverage factor included in Insurance policy attracts general public toward the policy? o Yes o No What according to you.

Personal Details : Name Address Age Contact No. Profile of respondent: Student Housewife Working Professional : __________________________________________________ : __________________________________________________ : __________________________________________________ : __________________________________________________ Business Self-Employed Government Service Employee Date:_______________ 81 .

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